Close but not cigar, Europe is taken as a continent, not based in political or currency frontiers. And VAT is far from being the local rate. Try it, log out and test different shipping countries.
Switzerland, Norway, Turkey or Russian Federation, to mention four, are not in the European Union (and of course, not in Eurozone, they have local currency). They just have part or all of the land in Europe-the-continent, so anybody there doesn't pay VAT (as law says) but is forced to pay in Euros without option to select Dollars, so they get the fluctuation. Wait... Kyrgyzstan is Asia, but pays in euros... here theory starts to fall apart.
About VAT (EU thing only), UK gets charged 20% (local rate) and products are paid in euros (UK is in EU, but not Eurozone, still using pounds) and Germany get charged 19% (local rate) and pays in Euros, but Luxembourg gets charged 21% when the local VAT is 15%, and Hungary gets charged 21% when local is 27%. For a long time many if not all countries were paying Netherlands' VAT, now it seems two pay local rate (Germany, UK), others not (Denmark, Austria, Finland, Poland, France ...) and others are impossible to know what is going on (local VAT is 21%, Spain, Belgium), and everyone has to pay in Euros (and as Teebe? calculated, bite the bullet and lose from markups around 3-5% in bank ops waste).